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nichloe23
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to their upcoming economic? Several students are discussing the meaning of efficient resource allocation prior to their upcoming economics exam. Which of the following students has correctly understood the definition of efficiency?
A. Sandra: "Efficiency is determined at the margin; efficiency, therefore, is achieved when marginal social benefit is equal to marginal social cost."
B. Ramon: "Efficiency definitely requires benefits to be greater than costs; efficiency, therefore, can be achieved only when marginal social benefit is greater than marginal social cost."
C. Kelli: "Efficiency simply requires that marginal social benefit is less than marginal social cost."
D. Fred: "Efficiency requires minimum costs; therefore, marginal social cost must be zero for efficiency to be achieved."
A. Sandra: "Efficiency is determined at the margin; efficiency, therefore, is achieved when marginal social benefit is equal to marginal social cost."
B. Ramon: "Efficiency definitely requires benefits to be greater than costs; efficiency, therefore, can be achieved only when marginal social benefit is greater than marginal social cost."
C. Kelli: "Efficiency simply requires that marginal social benefit is less than marginal social cost."
D. Fred: "Efficiency requires minimum costs; therefore, marginal social cost must be zero for efficiency to be achieved."